Salameh Expresses Relief over Lebanon's Economy, Says Job Crisis Growing

Central Bank Governor Riyad Salameh said on Friday that the Central Bank was able to maintain a stable growth rate despite the turmoil in the region.

He told As Safir newspaper in an interview that the growth rate is expected to increase by 2 percent in 2013.

Salameh stressed that the main problem facing the Lebanese economy is employment.

The Central Bank Governor said that the inflation rate in 2013 is estimated at about 4 percent

Salameh didn't expect further negative impacts on the Lebanese banking sector caused by the international sanctions imposed on Syria, Iran and Hizbullah.

Lebanon has come under international pressure to abide by international sanctions on neighboring Syria, which include freezing government assets and suspending cooperation with Syria's central bank and some other banks.

These measures include strict control over the transactions of Syrian clients and close monitoring of Syrians who wish to open new accounts.

“The banking sector has absorbed these crises and complied with the standards,” Salameh pointed out.

He expressed relief over the currency stability in the country, saying that the salaries of public employees will not be suspended.

“The Central Bank is coordinating with the Finance Ministry to fund the salaries,” Salameh said.

The official pointed out that the state's account at the Central Bank is “full.”

Salameh pointed out that the role of the Central Bank is to maintain stability and insure that the salaries are paid.

Lebanon's ratio of debt to GDP is one of the highest in the world.

According to the IMF's latest estimate, debt stood at 134 percent of GDP last year, down from 137 percent in 2010 and 146 percent in 2009.